India’s Acetone Market Poised for Growth in April as FY Closure Spurs Buying

Key Takeaways

• Acetone Prices Rise: Domestic manufacturers increased prices by ₹1/kg to ₹74++/kg (Ex-Dahej), while imports are priced at ₹74–75/kg (Ex-Kandla).
• Demand Recovery Expected in April: Pharmaceutical intermediates and seasonal demand from paints, coatings, and adhesives industries are driving market optimism.
• Supply Constraints Affect Pricing: India's monthly acetone consumption is 20,000–21,000 tonnes, while domestic production remains limited at 14,000 tonnes per month.
• Feedstock & Global Trends Impact Prices: Rising crude oil and natural gas prices, along with higher benzene and propylene costs, contribute to acetone price volatility.
• Market Strategy: Traders and manufacturers are actively building inventories, anticipating further price movements in April and May.

Chemicals Price: Acetone Increases

• Acetone prices in the Indian market remained stable last week due to the financial year-end closing. However, today, domestic manufacturers have increased prices by ₹1/kg to ₹74++/kg (Ex-Dahej) on advance payment terms.
• Importers are offering acetone in the range of ₹74–75/kg (Ex-Kandla) on 60-day payment terms.
• The price hike is primarily attributed to rising demand from the paints and coatings sector, coupled with reduced inventory at ports and higher replacement costs in April. Additionally, bulk drug manufacturers have become more active following the financial year closure.

Chemicals Demand & Supply: Demand Set to Grow in April 2025

• Acetone demand remained stable in March 2025 but is expected to strengthen in April 2025, according to market participants. Key pharmaceutical intermediates such as Paracetamol, Ibuprofen, Amoxicillin, and Carbamazepine, which experienced a slowdown in March, are likely to recover in April following the financial year closure, creating a positive market sentiment, as per traders.
• Seasonal demand from the paints and coatings sector, which picked up momentum in March, is expected to remain strong in April and May 2025.
• Additionally, demand for diacetone alcohol has improved in March, supported by stable production in key downstream industries, including paints, coatings, inks, personal care, and adhesives.
• India's total acetone consumption is estimated at 20,000–21,000 tons per month, while domestic production capacity stands at approximately 14,000 tons per month, with HOCL and Deepak Phenolics being the only manufacturers in the country.

Chemicals Market News: Crude Oil and Natural Gas Prices Show Upward Trend

• International Market Trends Crude oil and natural gas prices have seen an uptick in the global market.
• WTI crude oil benchmark rose 0.25% to $69.93 per barrel.
• Natural gas prices increased 0.54% to $3.97 per MMBtu.

Feedstock Price Trends 

• FOB Korea benzene was assessed at $826/ton.
• FOB Korea propylene stood at $815/ton.
• Downstream CFR China acetone prices were assessed higher at $810/tonne.

Expert Opinion: Acetone Price Volatility Expected

Acetone prices are expected to remain volatile in the near term, driven by fluctuating demand from key downstream industries and movements in global feedstock prices. Market participants are actively building inventories in anticipation of a potential price surge.